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The purpose of personal financial planning is to help clients achieve their goals by using a satisfactory mix of an emergency fund (3-6 months of fixed and variable expenses), insurance coverage, savings plans, investments, tax-saving strategies, retirement and employee benefit plans, and estate planning techniques. Important planning issues include gathering adequate data, assessing client risk tolerance, complying with regulatory requirements and ethical guidelines, matching planning strategies and investment products to the client's total situation, and monitoring all circumstances affecting the client's personal financial plan. |
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